The Bank of Butterfield has bought several banks in the Channel Islands which will expand its services for high net-worth individuals for an undisclosed sum of money.

Bermuda's second largest bank, which has a market capitalisation of $638 million, made the announcement yesterday that its Guernsey-based subsidiaries, Bank of Butterfield International (Guernsey) Ltd. and Butterfield Fund Managers (Guernsey) Ltd., acquired the Guernsey operations of Canadian Imperial Bank of Commerce, a leading North American financial institution.

In the deal Bank of Butterfield has acquired CIBC Bank and Trust Company (Channel Islands) Ltd., Canadian Imperial Bank of Commerce Trust Company (Channel Islands) Ltd. and CIBC Fund Managers (Guernsey) Ltd.

"This is a significant acquisition for Bank of Butterfield which continues our strategy of building on core activities and strengths," said Graham Brooks, Executive Vice President, International & Trust, Bank of Butterfield Group. "CIBC has built a high quality, well diversified business in Guernsey which together with our existing successful operations gives us a substantial presence with 215 employees and a combined balance sheet in excess of $1 billion."

Established in 1985, CIBC's Guernsey business has offered a full range of investment and banking services for high net worth individual and institutional clients. At its last financial year end, 30th October 2000, CIBC Guernsey had balance sheet footings of $350 million. Fee earning business accounts for over 80 percent of their income, the bank said.